The PE and PEG for ZM are worse than the average of the market resulting in a valuation score of 22.Ĭlick Here to get the full Report on Zoom Video Communications Inc ( ZM) stock. Because PEG ratios include more fundamentals of a company's overall health with additional focus on the future, they are one of the most used valuation metrics by analysts.Īll together these valuation metrics paint a pretty poor picture for ZM at its current price due to a overvalued PEG ratio despite strong growth. ZM's PEG comes from its forward price to earnings ratio being divided by its growth rate.

That sell-off continued after its third-quarter report on Nov.

The market is currently overvaluing ZM in relation to its projected growth due to the PEG ratio being above the fair market value of 1. Zoom Video Communications' stock has declined about 40 over the past 12 months as investors fretted over its post-pandemic slowdown. Use our easy video editing tools to create movement in your video. JPMorgan analyst Sterling Auty affirmed the price target on Zoom Video at 385 a share. ZM currently has a 12-month-forward-PE-to-Growth ( PEG) ratio of 3.73. Trailing PE ratios, however, do not factor in a company's projected growth rate, resulting in some firms having high PE ratios due to high growth potentially enticing investors even if current earnings are low. ZM's trailing-12-month earnings per share (EPS) of 3.31 does not justify what it is currently trading at in the market. ZM is a poor value at its current trading price as investors are paying more than what its worth in relation to the company's earnings. ZM's trailing-12-month Price to Earnings ( PE) ratio of 74.8 puts it above the historical average of roughly 15. Market Capitalization measures the total value of a company based on their stock price multiplied by the shares outstanding.

Zoom video stock